South Dakota Motor Vehicle Dealer Bond

What is the cost of the South Dakota motor vehicle dealer bond? 

South Dakota motor vehicle dealer surety bond costs vary depending on which auto dealer license type you need. Your exact premium will be provided after a quick application review.  Apply now to get your free, personalized quote!

• Annual premiums for the $5,000 Motorcycle or Snowmobile Dealer Bond start at $50. 
• Annual premiums for the $10,000 Trailer Dealer or Emergency Vehicle Dealer Bond start at $100.
• Annual premiums for the $20,000 Boat Dealer Bond start at $140.
• Annual premiums for the $25,000 Motor Vehicle Dealer, Mobile/Manufactured Home Dealer, or Final State Manufacturer Dealer Bond start at $175.

How do you get the South Dakota motor vehicle dealer bond?

You can apply for your free South Dakota motor vehicle dealer bond quote online 24/7. Simply choose which license type you need and provide the following information for Department of Revenue approval.

• dealer/dealership name
• dealer license number, if available

Once your payment is received, your official South Dakota vehicle dealer bond documents will be sent to your email.

How fast can I get an auto dealer surety bond? 

Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver your official South Dakota vehicle dealer bond faster than any other surety company. Orders placed by 4 PM CST Monday-Friday are typically processed with same-day emailed South Dakota auto dealer bond delivery.

What is a South Dakota motor vehicle dealer bond?

South Dakota Codified Law 32-6B-7 requires dealers who sell more than 5 vehicles in a 12-month period to file a surety bond before receiving a business license. These motor vehicle dealer surety bonds ensure vehicle dealers conduct business according to state law. The dealer's bond amount is determined based on the type of vehicles sold by the dealership. 

Why is a South Dakota car dealer bond required? 

By filing this bond, individuals agree to operate their dealerships according to state law and pay any losses, damages, or expenses resulting from fraud or other unlawful business practices. If a dealer fails to do so, the issuing surety company will pay valid claims up to the full bond amount. The bonded dealer must them reimburse the surety company for any claims paid.

Who regulates licensing for auto dealers?

The South Dakota Department of Revenue Division of Motor Vehicles enforces licensing regulations for vehicle dealers in the state, including surety bond requirements. If you have questions about licensing or the status of your motor vehicle dealer license application, you can contact the DMV by calling 1 (605) 773-4416 or emailing [email protected]. 

How do I update or change my vehicle dealer bond? 

If the South Dakota Motor Vehicle Division requires your bond documentation to be updated for any reason, contact your surety provider. If you purchased your bond from SuretyBonds.com, email [email protected] to explain the needed change. 

The most common changes requested for this bond are the dealer/dealership name or the dealer license number.

When does your South Dakota motor vehicle dealer bond expire?

South Dakota motor vehicle dealer bonds do not have a fixed expiration date, so your bond will remain active as long as you pay your renewal bond invoice on time each year. The bond can be canceled if the surety gives written notice of cancellation to the Department of Revenue and dealer. Cancellation becomes effective 30 days after the mailing of said notice.

How do you renew your South Dakota auto dealer bond?

A South Dakota dealer license is valid for 5 years; however, dealers must submit a renewal application and pay a renewal fee each year. Once you pay your annual SuretyBonds.com renewal invoice for your bond, renewal instructions will be emailed to you to keep it in good standing with the DMV.

Dealers will be mailed a renewal notice 3 months before their license expiration date. Take your completed renewal application and renewal fees to your local county treasurer’s office.

How do auto dealers apply for a license in South Dakota?

Complete the steps below to apply for your South Dakota auto dealer license.

1. Identify your license type. 

• Vehicle Dealer: sells new or used motor vehicles
• Used Vehicle Dealer: sells used motor vehicles only
• Mobile/Manufactured Home Dealer: sells mobile homes or manufactured homes
• Motorcycle Dealer: sells motorcycles
• Snowmobile Dealer: sells snowmobiles
• Trailer Dealer: sells trailers
• Boat Dealer: sells boats
• Emergency Vehicle Dealer: sells emergency vehicles (ambulance, fire truck, etc.)

2. Establish your business location and make sure it meets the following requirements.

• Be an enclosed structure located in South Dakota.
• Earn a zoning approval letter from a city or county in South Dakota.
• Be easily accessible and open to the public at reasonable times.
• Have a sign displaying the business name.
• Have the phone number and hours of operation posted in an easy-to-view area; these hours must include at least 20 hours per week between 8 a.m. and 8 p.m.
• Maintain a lot large enough to display at least 5 motor vehicles.
• The office space must be heated and lighted.
• Have an area to store and maintain the books and records required to conduct business.
• Maintain a working telephone number listed in the dealership's name.

3. Pass a business location inspection completed by a representative from the South Dakota DOR certifying that it complies with all minimum requirements.

4. Vehicle, used vehicle, and motorcycle dealers must submit proof of public liability insurance with a minimum limit of $300,000. 

5. Purchase and file a surety bond. Your bond amount will depend on your business type.

6. If you'll sell new vehicles, submit a copy of a franchise or dealer agreement.

7. If you rent your business location, submit a copy of the lease.

8. Compile your required documents and complete the South Dakota dealer license application and dealer license plate application form. The amount you pay for your dealer plates will depend on your dealership type and number of plates needed.

9. Pay your licensing fee.

• $300 for vehicle, used vehicle, emergency, and mobile/manufactured home dealers
• $250 for motorcycle and boat dealers
• $150 for snowmobile dealers
• $125 for trailer dealers

10. Mail your dealer license application and supporting documents to the following address. 

Dealer Licensing, Motor Vehicle Division 
445 E. Capitol Avenue
Pierre, SD 5750